07 April 2009
A private limited company can do it. But before doing so you have to get a letter from the creditor that he is agreeing for investing for ____ no of shares and the application money being _________ can be transfered from his loan account. Further in the letter he should be enclosed the application form. Please get application form also duly filled in.
Then conduct a board meeting and allot the shares to them. File Form 2 accordingly.
CAclubindia
